Singapore, 23 February 2017 – Singapore engineering company Hyflux has doubled its group revenue from the previous year but has been hit hard by increasing costs.
In its financial results, the group reported revenue of S$987 million in 2016, compared with S$445.2 million in 2015.
However, profit after tax and minority interests (PATMI) for the full year ended 31 December 2016 declined 91% to S$4.8 million.
The company blamed “weaker than expected electricity prices in Singapore”.
A close look at the recent financials revealed that for the FY2015, Hyflux’s direct costs (raw materials & consumables) was S$224 million. This jumped to S$729 million for FY2016.
The rise in costs have been put down to increased engineering activities on the TuasOne waste to energy project and Qurayyat Independent Water Projectin Oman.
While the company has recently diversified into the consumer market, municipal projects overall still contributed 92% of revenue.
The group recently signeda Memorandum of Understanding with Saudi Arabia state-owned Saline Water Conversion Corporation to deliver three seawater reverse osmosis desalination plants valued at US$180 million in the Kingdom of Saudi Arabia.